Complaints from licensed businesses arise as unlicensed business operate on TikTok

Businesses in Bhutan are required to register, obtain a license, and follow various tax laws. This applies to the ones operating online as well.

The Ministry of Industry, Commerce and Employment (MoICE) has guidelines for online businesses and as of now, there are 185 businesses licensed to sell online using E-commerce.

Licensed shopkeepers have complained about the inequality of the business market, where some get taxed and some do not. They have to follow a process where they register for their license, obtain it, and pay taxes after they start their business.

The MoICE Minister Lyonpo Namgyal Dorji said that the Ministry was committed to fostering a transparent and fair E-commerce environment while addressing the challenges posed by unregulated online businesses.

He says, “Even though the Ministry formulates E-commerce policies and guidelines, monitoring unlicensed online sellers remains a challenge due to the dynamic nature of online platforms.”

They offer a wide range of products at competitive prices while bypassing some of the formal regulations that apply to businesses with fixed storefronts, such as registering for a business license and paying taxes.

He also stressed the importance of consumer protection highlighting that unlicensed businesses might offer competitive prices, but consumers face risks such as deceptive practices, lack of accountability, and compromised rights. He added that exercising caution when purchasing from unverified sellers and prioritizing licensed businesses for their own safety and legal recourse was important.

Information is regularly shared on the Ministry’s website and social media handles, supplemented by training and workshops with global experts to enhance awareness.

Targeted advocacy and awareness programs have been conducted in around 5 Dzongkhags and the ministry plans to extend these efforts to more regions. These sessions educate businesses and consumers about the importance of E-commerce compliance and fair trade practices.

The Minister says, “While E-commerce in Bhutan is still maturing, existing financial and customs regulations minimize risks of illicit trade. Our ongoing advocacy and monitoring efforts aim to create a more compliant and equitable digital marketplace.”

He said that online businesses should pay tax.